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A two-point estimate method is proposed in this paper to assess the power transfer capability uncertainty. This paper assumes that the uncertainty of the line parameters and bus injections involved in transfer capability calculations can be estimated or measured and shows how to estimate the corresponding uncertainty in the transfer capability. Instead of using a large number of simulations as required in the Monte Carlo approach, for a system with n uncertain parameters, the two-point estimate method uses 2n calculations of transfer capability to quantify the uncertainty. The proposed method uses a numerical method to calculate the moments of the transfer capability. The moments are then used in the probability distribution fitting. Using the obtained transfer capability uncertainty information and a desired level of reliability, an adequate transmission reliability margin can be determined for each transmission service. The proposed method can be used directly with a deterministic computer program and it does not require derivatives of the transfer capability. Test results of the proposed method are compared with those obtained from the Monte Carlo simulations and a truncated Taylor series expansion method.